tv Cavuto on Business FOX Business December 23, 2012 1:30am-2:00am EST
christmas means we're all getting a lump of coal in our stockings. and the minorer of coal up 20% in six months. >> brenda: gary b, bull or bear. >> looks kind of weak it me, bearish right now. >> brenda: and jonas, prediction. >> if you are watching the show you made it through the mayan apocalypse and lend out money 20 years, vanguard. >> brenda: toby what do you say. >> we survived the millennium and get 10% in a year. >> brenda: two years, better than losing money. all right. to all of you out there from all the elves on bulls and bears, merry, merry christmas. don't go anywhere because up next, neil cavuto. >> well, they're goofing off and we're headed off the cliff.
i'm neil cavuto. instead of leading down for christmas break, this is what's going on on capitol hill. santa, santa, delivering coal to republican leaders, apparently, is not a fan of cutting government spending. wonder why he wore red, but i digress. house minority leader nancy pelosi using props to deliver pretty much-- >> more than 20 million children will have reduced food and nutrition benefits. merry christmas to you and yours. 1 1.7 sick million seniors will lose meals on wheels. happy holidays to you. >> neil330 million americans will face a recession, happy holiy to you. no wonder why nothing else is gettg down. today, charles payne, adam
lashinsky, charlie gasperino gerri willis. >> i'm used to by nancy pelosi. overarching democrats, anything that republicans want to do that smacks of fiscal responsibility is mean-spirited. beyond mean-spirited they hate, children, hate seniors, hate, hate, hate. just in the name of getting the country fixed up so we have longevity and continued prosperity. it's a terrible way for someone in that power position to govern, i really think so. >> neil: it's a tough way to come back to the negotiating table from the other side. >> exactly, where are they? they went home. where are our leaders, a pox on both of your houses is what i say. they're both having their problems and you know, two weeks ago now that harry reid was spending all of his time trying to find popcorn for a special showing of the lincoln movie? get to work people. >> neil: that's right, by the way, we have it on good authority he did find way to get a waiver so they could have food in the auditorium.
i don't think it was buttered, just regular. >> no way, that's so good. >> neil: ben stein, the bottom line, nothing gets done and back and forth continues. >> it's a disgrace, first of all, aim not sure there are 330 million americans and your data may be-- >> 328.4, i digress. >> the real issue to me, the simple thing, they're our representatives, they're the government. they're supposed to be governing, not supposed to be pouting and throwing fits. they're supposed to be governing and this is a big giant issue, they've got to get to work. this, this comic game playing and pout ang showing off, it's a disgrace and they've got to come back and i think the president should call them back into session and get to work. >> i totally disagree. >> i knew you would. i knew you would. >> i mean, but on the merits, i don't -- when you talk about our representatives, nancy pelosi is my representative, but i don't begrudge her this.
well, i happen to be a constituent of hers, that's just a fact and, but here is observation, she is making a perfectly valid political point and she's making a serious point, right? this is why she's against any kind of entitlement reform. at the very same time, boehner had to pull back his plan b because his caucus is not behind him on meeting the president halfway. >> no,o, no, because there's no-- >> and in the meantime, we have a meaningful debate going on-- i don't like-- >> charles, charles. >> real politics, boehner cannot sell that plan because there are no -- there are no budget cuts in it. the the president hasn't offered anything. and we should point out and get the dates down for the viewers. the big time, the rubber meets the road two places, just a couple of days before christmas where we are right now, we're going to pass that, i believe, and then right after the new year, where they can come back and do a deal. those are the two main dates. i think they're coming back in the new year and doing a deal. if you look at just about-- first off the markets are
going to-- the markets are not going to like what's going on now and they will be forced to come back with sometng, but it will be after the new year and i'll tell you-- >> where it will be. >> if you look at these two plans and you analyze the two plans and effects on the national debt both of them deliver 21 trillion dollars in federal debt in ten years. that's not a winner. it's not a winner from the democrats, it's not a winner from the republicans either. >> right on. >> neil: charles payne, the bottom line, air looking at something, if they can't look at something that ostensibly shapes the government by 4 trillion, that leaves us with trillions more in spending in the same ten years, how are they ever going to reform the tax code, reform the budget process, simplify the rules and regulations that both parties thought they would attempt to do? i mean, this is not a good preview to coming attractions. >> the short answer this particular body will not do it. at some point down the road, 10 years, 15 years.
to your point earlier about the market's reacting, at some point we will become greece, there aren't any more hypothesis. >> charles, why are they still relatively calm? i think they're relatively calm because of what charlie said. the markets believe we will get a deal. the leadership is trying to get a deal, but it's not easy and by the way by the way-- >> adam, adam. >> charlie, not the end of the world. >> markets like short-term fixes, too. and just because-- >> markets like money printing and. >> neil: by the way, i know i might offend some of you market enthusiasts here, but markets can be wrong and markets might be satisfied. >> they're always wrong. >> neil: a short-term gift and remember the first tarp vote rejected and the market fell about 800 points and run back together and get a deal going and the market ends up being 4,000 points lower a few months later. so, ben, my worry is basing everything you do on a market selloff. >> well, the markets are
always wrong,eil because they change the next day or the next hour. and for long periods of time, they have a modest degree of predicted value. >> neil: would you do any deal based on what you fear the markets would do? >> i would not. i would do a deal based on the national inme. and got to cut spending a lot. and we've got to raise taxes a lot. >> if you want a deal for the markets. >> neil: but you don't get into a win, i mean. >> of course not. >> if you did tarp 2 on the basis of getting the markets to calm down and they didn't the. >> by the way, then they came back. why did they come back? okay, they went down because they priced in later. >> came back later. >> after march 2009 went from 6 to 13. and it's acomeback. >> neil: with, but we fell 4,000 points. >> and came back 6 to 13. >> neil: and you just confirmed the-- >> long-term. >> and you are so much of wall street and-- >> please keep saying that.
>> you're a reprehensible capitalist, everything the embodiment of evil. >> me and lloyd blank fine are holding hands. >> it's not just about appeasing the markets-- >> on steroids. >> i'm so proud of everyone saying that the public is mad at the republicans. the republicans are going to be mad at the tea party. you know, trying to appease polls on a daily basis is nuts. >> neil: go ahead, adam. >> i wasn't saying that washington should try to appease the markets. and the markets not worried like charlie said they would. >> neil: i don't care about your view. how about using santa, santa, santa, to sell your standing. well, i knew santa. santa was a friend of mine. that's not fair! (laughter) >> by the way, adam, you're wrong about that. we had a market on friday. >> neil: bottom line, guys, i'm offended by all of you.
>> neil: get ready for new fees to fly in the new year. from southwest airlines. you miss a flight and don't cancel your discount ticket, you're going to pay up. overweight bags get ready to lighten up your wallet more. if you're overweight get ready to be killed. just-- (laughter) southwest says it nds the money. what about letting us keep them. >> it's so ridiculous and makes me so-- the airlines fees are like tattoos, never ever go ay they just go up, up, up, up. >> neil: that depends where the tattoos are. i do. >> and american airlines is-- >> sorry. >> that was really. >> that was sassy. >> and quit while you're he ahead on this. >> neil: i meant nothing and what ben might have been inferring, go ahead. >> and where was i.
>> neil: you find it offensive. >> i find it offensive. >> neil: the fees not the tattoos. >> mine says mom on it. >> right here, mom. >> show it to me. >> neil: the industry makes a lot of money and charles payne you pointed out last week, the industry makes a ton of money off of it. >> i guess the way they go about it shall the airlines haven't figured out a way to make money since 1980's and gone into the senseless air fare wars. i think it's a disingenuous way to do business. >> and go toss to the cost of your ticket. roll it into the cost of the ticket. tell me what you want to charge. >> i tell you why, gerri. because people freak out if they throw it into the cost and raise prices that much. and by the way, the polite thing to do when you don't show up is cancel ahead of time and this causes disruptions for restaurants and airlines, that's all they're asking people to do there, neil. got no problem trying to make
money. >> you show up and they sell you a ticket before the flight and it's a stand by. >> neil: why are you trying to make a connection and you're still in the air. >> some of t airlines are ten miles long and you've got to-- >> you didn't mean to oversep. all right, all right. >> responsibilities. >> neil: i'll give you that. >> why do you pick on the the airlines all the time? >> you don't find this-- >> no, they have a business and they need to make some money. >> and any about what they're doing, if you want to find out the fees on american airles. >> neil: and the market is honest and-- >> wait a second, we're talking about it. how do we find out about the stuff, hiding or-- >> and okay. >> i'll tell you how. >> if they're hiding it, why are we reporting it. >> it's out there. >> a lot of people don't know about it. >> because, no, no, no-- >> we did. >> big headlines. >> we help the world. >> huge headlines, okay? >> ben stein, are you okay
with this. >> i'm very much okay with it. i love southwest i wish they would reregulate airlines together and not have the bargain air fares, the airplanes are too full. >> more rules. >> neil: you could dispense nickel and diming for more regulating. >> i'd like the way it was when jimmy carter was president. a fixed fee, and guarantee the profit. >> so wrong. >> and there were airlines-- they reregulate it. >> you've got a deck of cards, cologne, and you've got price-- >> you've got the wings, fantastic. >> and where were you when you were getting cologne. >> as a little kid. >> and it must have been right around the '70s. >> and a slice of roast beef. >> neil: anyway. >> it's true. >> neil: we tried to suffer this process along. but anyway we tried. and the run over the health
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out of general motors. selling 200 milion and remaining stake the next 15 months the and when we're finally out taxpayers expected to lose billions from the bailout. charles you saw that coming. >> if they get to , it might be over billions. there's another number we don't know, the number on next set of bailouts. and the myth of the successful bailout, the next time we bailout wall street and favored companies by whatever administration is in the white house, that number is it going to be huge. >> neil: ben. >> it was not to make money. the government is in the speculating or a hedge fund, the plan was to keep a viable auto industry and keep people employed and worked beautifully, and a defense contractor. it's a miracle that we made money on some of them. >> we really didn't make money
on them. i know they have the announcements out, you know, citigroup paid back and goldman paid back and remember how they made money? they rigged the system. they took interest rates to zero, and qe1, 2, 3 and 4, but that comes out-- that's like saying, i can make money if you just give me money and i can borrow t zero. absolutely rigged system. >> agree charlie and make money, and still made money. charlie, they still made money and we were not expect-- >> that's all-- >> and you're both right in your respective position, but gerri willis, to echo something charles said at the outside, we went from too big to fail to too many not to help and precedent is we'll do it again and again and again. >> they owe us 7 billion dollars and give us our 7 billion back. even if you're in favor of the gm bailout they put out a truck on the road that the hood latch doesn't work, that's being recalled.
how many ways can they get us, taxes and products that-- >> and put out a lot of nice stuff where the hood doesn't go up. >> as long as you can find it. >> drive slowly, right? be very careful. or don't drive, leave it on the driveway, looks very nice (laughter) adam, what do you think of that? >> well, i think that charles put his finger on it. it's a policy conversation not an investment conversation. yes, we're going to lose, 7, 12 billion dollars on gm. charlie, probably make like 46 billion on aig and the other big things. >> you cannot-- >> first off, you can't measure moral hazard. numberone, you can't measure the lines that people have their money-- they don't want to roll the dice in the stock market and they're in fixed income accounts, they lose money. >> i agree with charles, it's a policy conversation and he and i disagree on it. we did the right thing not letting the industry go down in a crisis. i mean. >> do you know what you're saying here?
>> listen, there's a notion out there that big businesses are protected and when that happens, they do stupid things and that's one of the problems. listen, tarp and all that have-- >> and don't tell me that we made money. >> neil: and about the precedent, to your point, charles, whatever the good, i'm just worried about the present because i know if it it happens again, it probably will, we'll do it again with much bigger numbers. >> of course, charlie hit the nail on the head. in other words, why wouldn't the businesses take these sort of risks if you have a friend in the white house. >> why would you? >> or if you're on wall street why wouldn't you take the risks if you know you're going to be bailed out and that keeps us in check. and with mother nature, you put your hands in the fire you get burned. with this, you can jump in it, dance in it, you don't get burned because somebody else does. >> charlie, let me just make a point. >> neil: go ahead, adam. >> gm squanders its good
balance sheet if they make bad cars, losing money, go out of business we'll let them go out of business and-- >> whoa. >> what's up with that, dude? >> you think that gm goes bad again we're going it let that happen? >> give me a break. >> yes, as long as it doesn't happen while everything else is craving. >> and president obama ♪ dream ♪ >> hat's what i say. >> and bipartisan to blame for this, the rate. i want to thank charlie and gerri, and naughty and nice, our gang has the the stocks that they say are just the right price. ♪ gonna find out who is naughty and nice, santa claus is coming to town ♪
>> and they come out with a jordan . now lebron's turn. and it is a competive industry . they're risky. with a fan guard depresion and they have a picker of vig. dividends are the way to go do not get wrapped up with worring with taxes. investors need to be safe. >> tax thing doesn't distu you. >> it disturbs me